EXPLANATORY STATEMENT
Approval and Notice of approval under clauses 6 and 11 of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval No.39 of 2009
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003 (HESA)
VET Provider approval and notice of approval under clauses 6 and 11 of Schedule 1A of HESA
Authority
Schedule 1A of HESA makes provision for the VET FEE-HELP Assistance Scheme. Clause 6 of Schedule 1A provides for the approval of bodies as VET Providers by the Minister, while clause 11 of Schedule 1A provides that the Minister must decide an application for approval as a VET Provider (paragraph 11(1)(a)) and cause the applicant to be notified in writing whether or not the applicant is approved as a VET provider (paragraph 11(1)(b)).
Subclause 12(1) of HESA stipulates that a notice of approval of a body as a VET Provider is a legislative instrument.
Under section 238-5 of HESA the Minister has delegated her powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves Benchmark Resources Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Benchmark Resources Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Benchmark Resources Pty Ltd notice of that approval for the purposes of paragraph 11(1)(b) of Schedule 1A of HESA.
Background
VET FEE-HELP is an income contingent loan scheme for the vocational education and training (VET) sector that is part of the Higher Education Loan Program (HELP). It is an extension of the higher education FEE-HELP arrangements.
VET FEE-HELP assists eligible students to pay for all or part of their VET tuition fees when studying one or more of the following eligible accredited VET courses of study: diploma; advanced diploma; graduate certificate; and graduate diploma.
Bodies corporate which are also Registered Training Organisations (RTOs) are able to apply to become approved as VET providers. If approved, a VET provider will be able to offer VET FEE-HELP assistance to its eligible students.
Commencement
In accordance with subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003, the notice and the decision to approve Benchmark Resources Pty Ltd as a VET provider take effect on the day after the notice is registered on the Federal Register of Legislative Instruments.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on Benchmark Resources Pty Ltd and this body is the only body affected by the notice. This notice will not have a direct or substantial indirect effect on business, nor will it restrict competition.
Overview
The Higher Education Support Act 2003 (HESA) was enacted to establish and regulate the Higher Education Loan Program (HELP), including the VET FEE-HELP Assistance Scheme. This scheme extends the FEE-HELP arrangements to the vocational education and training sector, allowing eligible students to cover all or part of their VET tuition fees for courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The VET FEE-HELP scheme was introduced to address the gap in financial assistance for vocational education, enabling students to access further training without immediate financial burden. The Act was enacted by the Parliament of Australia, with the Minister for Education having the authority to approve VET providers under Schedule 1A, which outlines the scheme's provisions. The policy objective is to support student access to vocational education and training by facilitating income contingent loans through approved VET providers.
Scope and Application
The VET Provider Approval No. 39 of 2009 under the Higher Education Support Act 2003 applies specifically to Benchmark Resources Pty Ltd, a body corporate that has applied to become a Registered Training Organisation (RTO) and is approved as a VET Provider. This approval allows the entity to offer VET FEE-HELP assistance to its eligible students studying specific accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The legislative instrument is issued under the authority of the Minister for Education and is effective from the day it is registered on the Federal Register of Legislative Instruments. The approval and notice of approval are governed by clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003, and the decision to approve is made by an authorised APS employee in the Department of Education. Notably, no consultation was deemed necessary as this notice solely benefits the applicant and does not have a significant impact on business or competition.
Key Provisions
The explanatory statement details the approval of Benchmark Resources Pty Ltd as a VET Provider under clause 6 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 sets out the approval process for bodies to become VET Providers, while clause 11 mandates that the Minister must decide on applications for approval and notify the applicant of the decision in writing. Section 238-5 of HESA delegates the Minister's powers under clauses 6 and 11 to an APS employee in the Department, who is responsible for the decision and subsequent notification to Benchmark Resources Pty Ltd.
Under the VET FEE-HELP Assistance Scheme, approved VET Providers can offer financial assistance to eligible students to cover all or part of their vocational education and training tuition fees. To qualify for approval, bodies corporate that are also Registered Training Organisations (RTOs) must apply to become VET Providers. Once approved, they can provide VET FEE-HELP to their eligible students. This scheme is an extension of the higher education FEE-HELP arrangements, designed to support students studying diploma, advanced diploma, graduate certificate, and graduate diploma courses.
The approval and notification of Benchmark Resources Pty Ltd as a VET Provider take effect the day after the notice is registered on the Federal Register of Legislative Instruments, in accordance with subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003. Consultation was not considered necessary because the notice solely benefits Benchmark Resources Pty Ltd and does not have a direct or substantial indirect effect on business or competition.
The obligations imposed by the legislation require Benchmark Resources Pty Ltd, once approved, to adhere to the conditions of the VET FEE-HELP Assistance Scheme. This includes ensuring that they only offer assistance to eligible students and courses as outlined in the Act. Furthermore, Benchmark Resources Pty Ltd must comply with any reporting and monitoring requirements to maintain their approval status. Failure to comply with these obligations could result in the revocation of their VET Provider status, which could prevent them from offering VET FEE-HELP assistance to their students.
The explanatory statement also highlights the potential consequences for breach of the Act's provisions. While specific offences and penalties are not detailed in the provided text, it is clear that non-compliance with the VET FEE-HELP Assistance Scheme could lead to significant civil or criminal consequences. These could include fines, revocation of approval, or other legal actions deemed appropriate by the Minister or the relevant authorities. The exact penalties would depend on the nature and severity of the breach, but they could potentially include substantial financial penalties and legal sanctions against Benchmark Resources Pty Ltd.